china pup joint factory

OCTG Pup Joints is one kind of common accessories for connection with casing and tubing. Threaded pup joints are divided into male threaded ends, single male threaded and Female threaded. The size and material is the same as the casing or tubing.

China N80 Pup Joint Manufacturer Derbo Supplies N80 Pup Joint, Hot Rolled, 1.66 Inch, EUE 2.40lb/ft, Oiled, Painting Finish, for Oil & Gas Industries.

The drill pipe joint is an important connecting part of the oil drill pipe and drilling tool, and is widely used in the oil drilling industry. Our pup joint drilling is finished with high-quality and unique materials for excellent durability and precise dimensional accuracy. The threads on the fittings are cut on a CNC machine, which ensures high precision of the threads and prolongs the service life of the fittings. Considering the specificity in practical applications, we use phosphate coating or copper plating to enhance the wear and chemical resistance of the joint. This pup joint drilling has good mechanical strength and comprehensive performance and meets international standards, it can be widely used in oil, natural gas, sewage treatment and other industries.

Outside Diameter of Tubing Joint: From 2-3/8"(60 3mm) to 4.5"(114.60mm) Pipe End: EUE/NUE Outside Diameter of Casing Joint: From 4-12"(114 3mm) to 20*(508mm)

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Find 2-7/8" EUE oil tubing pup joint(box *pin) from China Manufacturer, Manufactory, Factory and Supplier - Cangzhou Ronald Pipeline Equipment Manufacturing Co., Ltd. on ECVV.com

November 30, 2016,Canada Border Services Agency (CBSA) determine the Oil country tubular goods pup joints made in China will keep the anti-dumping tax,to project the steel pipeline industry of Canada.

On August 2, 2016, the Canadian International Trade Tribunal (CITT), pursuant to subsection 76.03 of the Special Import Measures Act (SIMA), initiated an expiry review of its finding made on April 10, 2012, in Inquiry No. NQ-2011-001,concerning the dumping and subsidizing of oil country tubular goods pup joints made of carbon steel or alloy steel, welded or seamless, heat-treated or not heat-treated, regardless of end finish, having an outside diameter from 2 ⅜ inches to 4 ½ inches (60.3 mm to 114.3 mm), in all grades, in lengths from 2 feet to 12 feet (61 cm to 366 cm), excluding casing pup joints, originating in or exported from the People’s Republic of China (China).

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China J55, K55, N80, L80, P110 Pup Joint Factory Dervos Supplies J55, K55, N80, L80, P110 Pup Joint, 2 3/8 to 20IN, Length 0.61m, 0.91m, 1.22m, 1.83m.

China J55, K55, N80, L80, P110 Pup Joint Factory Dervos Supplies J55, K55, N80, L80, P110 Pup Joint, 2 3/8 to 20IN, Length 0.61m, 0.91m, 1.22m, 1.83m.

The pup joint is a commonly utilized fitting in industrial pipe connection. According to various connections, it can be normally divided into thread and flange types. The threaded type can be further categorized into two head external thread, single head external thread, and flat head external thread types. In addition, the item falls under tubing and casing types based upon various usages.

Compared with the tubing, it is simply different in length. We can produce a variety of flat end and external upset tubing pup joints with J, N, L, and other steel grades and different specifications.

Pursuant to subsection 38(1) of the Special Import Measures Act, the President of the Canada Border Services Agency made preliminary determinations of dumping and subsidizing on December 12, 2011, respecting the alleged injurious dumping and subsidizing of oil country tubular goods pup joints, made of carbon or alloy steel, welded or seamless, heat-treated or not heat-treated, regardless of end finish, having an outside diameter from 2 3/8 inches to 4 1/2 inches (60.3 mm to 114.3 mm), in all grades, in lengths from 2 feet to 12 feet (61 cm to 366 cm) originating in or exported from the People"s Republic of China.

On July 22, 2011, the Canada Border Services Agency (CBSA) received a written complaint from Alberta Oil Tool (AOT), a division of Dover Corporation (Canada) Limited of Edmonton, Alberta, (hereafter, “the Complainant”) alleging that imports of certain pup joints originating in or exported from the People"s Republic of China (China) are being dumped and subsidized and causing injury to the Canadian industry.

On August 12, 2011, pursuant to subsection 32(1) of the Special Import Measures Act (SIMA), the CBSA informed the Complainant that the complaint was properly documented. The CBSA also notified the government of China (GOC) that a properly documented complaint had been received and provided the GOC with the non-confidential version of the subsidy portion of the complaint, which excluded sections dealing with normal value, export price and margin of dumping.

The Complainant provided evidence to support the allegations that certain pup joints from China have been dumped and subsidized. The evidence also disclosed a reasonable indication that the dumping and subsidizing had caused injury and are threatening to cause injury to the Canadian industry producing these goods.

On September 9, 2011, consultations were held with the GOC in Ottawa pursuant to Article 13.1 of the Agreement on Subsidies and Countervailing Measures. During these consultations, China made representations with respect to its views on the evidence presented in the non-confidential version of the subsidy portion of the complaint.

On September 12, 2011, pursuant to subsection 31(1) of SIMA, the President of the CBSA (President) initiated investigations respecting the dumping and subsidizing of certain pup joints from China.

On September 13, 2011, the Canadian International Trade Tribunal (Tribunal) commenced a preliminary injury inquiry, pursuant to subsection 34(2) of SIMA, into whether the evidence discloses a reasonable indication that the alleged dumping and subsidizing of certain pup joints from China have caused injury or retardation or are threatening to cause injury to the Canadian industry producing the goods. On November 14, 2011, pursuant to subsection 37.1(1) of SIMA, the Tribunal made a preliminary determination that there is evidence that discloses a reasonable indication that the dumping and subsidizing of certain pup joints from China have caused injury or retardation or are threatening to cause injury.

On December 12, 2011, as a result of the CBSA"s preliminary investigations and pursuant to subsection 38(1) of SIMA, the President made preliminary determinations of dumping and subsidizing with respect to certain pup joints originating in or exported from China.

Of the other producers certified to produce the like goods in Canada, only Tenaris Canada (Tenaris), of Sault Ste. Marie, Ontario, confirmed that they are manufacturing them. Tenaris produces like goods which are premium pup joints in relatively small quantities and provided a letter supporting the complaint.

At the initiation of the investigations, the CBSA identified 109 potential exporters and producers of the goods under investigation. The CBSA sent a dumping Request for Information (RFI) to each potential exporter and section 20 and subsidy RFIs to each potential exporter and producer in China.

As part of the section 20 inquiry, RFIs were sent to all known producers of pup joints in other countries (excluding China). This list of certified producers was obtained directly from the American Petroleum Institute (API). A total of 139 RFIs were sent to these producers requesting domestic selling price and costing information for pup joints produced at their facilities.

For the purpose of these investigations, “Government of China” refers to all levels of government, i.e. federal, central, provincial/state, regional, municipal, city, township, village, local, legislative, administrative or judicial, singular, collective, elected or appointed. It also includes any person, agency, enterprise, or institution acting for, on behalf of, or under the authority of any law passed by, the government of that country or that provincial, state or municipal or other local or regional government.

Oil country tubular goods pup joints, made of carbon or alloy steel, welded or seamless, heat-treated or not heat-treated, regardless of end finish, having an outside diameter from 2 3/8 inches to 4 1/2 inches (60.3 mm to 114.3 mm), in all grades, in lengths from 2 feet to 12 feet (61 cm to 366 cm) originating in or exported from the People"s Republic of China.

Pup joints are oil country tubular goods (OCTG) made from carbon or alloy steel pipes used for the exploration and exploitation of oil and natural gas. These pipes may be made by the electric resistance welded (ERW) or seamless production method, and are supplied to meet American Petroleum Institute (API) specifications 5CT or equivalent standard. 5

Pup joints are primarily used for the purpose of adjusting the depth of strings or down hole tools, particularly where exact depth readings in a well are required for any given purpose, such as setting valves, packers, nipples or circulating sleeves. Pup joints are also used with down hole pumps. The number and lengths of pup joints may vary widely from well to well, depending on the various equipment and performance requirements established by engineers of the purchasing end users.

Pup joints may range from 2 feet to 12 feet in length with a permitted tolerance of plus or minus three inches. The sizes are generally 2, 4, 6, 8, 10 and 12 feet in length.

The input pipe is produced in accordance with API 5CT, and may be produced using either seamless or ERW material. While pup joints may be made with ERW pipe, the Canadian market employs predominantly seamless OCTG. All pup joints produced by the Complainant are seamless products. 6

The pup joints subject to these investigations are, by virtue of the characteristics such as the outside diameter range, essentially short lengths of OCTG tubing.

Theoretically, subject pup joints may be supplied to meet any grade including and not limited to, H40, J55, K55, M65, N80, L80, L80 HC, L80 Chrome 13, L80 LT, L80 SS, C90, C95, C110, P110, P110 HC, P110 LT, T95, T95 HC, and Q125, or proprietary grades manufactured as substitutes for these specifications. The most common demand in the Canadian market is for J55 or L80 grades.

The grade numbers define the minimum yield strength required of the grade in kilo-pounds [force] per square inch (“ksi” or 1,000 pounds per square inch). Pup joints may also be made to proprietary specifications. The Complainant makes or has the capability to produce pup joints in any of these specifications/grades.

As with all OCTG, a standard pup joint must be able to withstand outside pressure and internal yield pressures within the well. Also, it must have sufficient joint strength to hold its own weight and must be equipped with threads sufficiently tight to contain the well pressure where lengths are joined.

There is a small market segment for perforated pup joints. These are pup joints with holes in the body of the pup joint (usually 3/8 inch although they may have holes or slots of various sizes in the body). The product is produced with API 5CT tubing, though once perforated the product no longer conforms to an API 5CT specification, since it no longer meets the yield strength requirements. Perforated pup joints are employed to allow fluids to enter the production tubing. They can also be used to create a mud anchor. Perforated pup joints are included as goods subject to these investigations.

On March 23, 2010, the Tribunal excluded ‘pup joints’ as part of its finding in Inquiry No. NQ-2009-004 on Certain Oil Country Tubular Goods (OCTG). In that finding, the Tribunal stated:

“The Tribunal hereby excludes pup joints, seamless or welded, heat-treated or not heat-treated, in lengths of up to 3.66 m (12 feet), from its injury finding.” 7

Pup joints are manufactured in Canada by the Complainant using plain end tube as an input. For J55 grade pup joints, a length of J55 OCTG tubing is employed. For L80 grade pup joints, the input is an A-519 mechanical tube with the appropriate steel chemistry for L80 OCTG. The L80 input tube does not qualify for the API 5CT designation until it has been tested in accordance with API requirements. The Complainant performs the testing required.

The production process of the input pipe itself is virtually identical to that employed for OCTG tubing and casing. There are, however, significant subsequent costs associated with transforming the input tubing into pup joints including: cutting to length, end finishing, threading, and testing to meet the certification required.

For J55 grade pup joints, the Complainant produces an upset end by heating (upset forging) and butting to thicken the end of the pipe diameter for threading. J55 tubing is cut 8 inches longer than the required pup joint length to accommodate this process. In the case of L80 grade pup joints, the production process uses profiling rather than upset ends, and accordingly only 1/4 inch of additional length is needed to accommodate finishing. Profiling refers to machining the pipe towards the ends of the pipe so it is thicker at the far ends. This process is used instead of upsetting because upsetting a pipe with steel chemistry for an L80 grade would require the producer to heat-treat the pipe again.

Testing includes drift testing which is an assessment of the straightness within the hollow part of the tube, to ensure no bends or kinks exist after the pup joint was forged, and hydrostatic testing which assesses the pup joint"s ability to withstand internal pressure.

The Complainant, Alberta Oil Tool (AOT) of Dover Corporation, accounts for the major proportion of domestic production of like goods in Canada. The Complainant manufactures pup joints in Canada at its facilities in Edmonton, Alberta.

Dover Corporation (Canada) Limited (Dover) produces and markets a wide range of production service equipment solutions for the oil and gas industry. AOT is a division of Dover, and operates as part of the Norris Production Solutions business unit along with Norris Rods (USA). Norris was founded in 1882. AOT produces and sells its products under the Norris brand, including pup joints.

Among the products produced and sold by the AOT division of Dover are pup joints, sucker rods, drive rods, tubing and casing fittings, butterfly valves and controls.

Regarding the dumping investigation, information was requested from known and potential exporters, vendors and importers, concerning shipments of subject pup joints released into Canada during the Dumping POI of July 1, 2010 to June 30, 2011.

Regarding the subsidy investigation, information related to potential actionable subsidies was requested from known and potential exporters and the GOC concerning financial contributions made to exporters or producers of subject pup joints released into Canada during the Subsidy POI of January 1, 2010 to June 30, 2011.

In the current case, the Complainant requested that section 20 be applied in the determination of normal values due to the alleged existence of the conditions set forth in paragraph 20(1)(a) of SIMA. The Complainant provided information to support these allegations concerning the Chinese OCTG sector, which includes pup joints.

At the initiation of the investigation, the CBSA had sufficient evidence, supplied by the Complainant and from its own research and past investigation findings, to support the initiation of a section 20 inquiry to examine the extent of GOC involvement in pricing in the OCTG sector, which includes pup joints. The information indicated that Chinese prices in this sector have been influenced by various GOC industrial policies. Consequently, the CBSA sent section 20 RFIs to the GOC and all known Chinese OCTG producers and exporters to obtain information on the matter.

The OCTG sector, which includes pup joints, is the same sector that was examined in the CBSA"s investigations of certain Seamless Steel Casing (2008) and certain OCTG (2010). Each of those section 20 inquiries concluded that domestic prices in the OCTG sector in China are substantially determined by the GOC and that there is sufficient reason to believe that the domestic prices are not substantially the same as they would be in a competitive market.

The following is the CBSA"s analysis of the relevant factors that are present in the Chinese steel industry and which affect the OCTG sector, which includes pup joints.

The 2009 Steel Revitalization/Rescue Plan also applies to the OCTG sector in China, which includes pup joints. The GOC specifically directed one of the cooperating exporters in the OCTG(2010) investigation, which was one of the largest state-owned enterprise (SOE) producers, and possibly the largest seamless OCTG manufacturer, to reorganize with another company.14

Also included in this plan are minimum requirements for steel production in order to eliminate smaller players in the market. Through this plan, the GOC is continuing its reform and restructuring of the Chinese steel industry. The GOC"s target is that by 2015, China"s top 10 steel producers will represent 60% of the country"s total steel output. According to the NSP (2005), the long-range GOC target for mergers and acquisitions is to have the top 10 Chinese steel producers account for 70% of total national steel production by 2020.17 This 12th Five-Year Plan is the next development stage of GOC directives aimed at achieving this long-range 2020 target.

According to this 12th Five-Year Plan, the benefits of a more highly concentrated steel industry will reduce overcapacity, decrease pollution and will improve Chinese steel producers" bargaining power when negotiating on iron ore imports. In addition, through the 12th Five-Year Plan, the GOC is progressing with its initiative in the 2009 Steel Revitalization/Rescue Plan to move Chinese steel production facilities to China"s coast. By the end of the GOC directed 12th Five-Year Plan, in 2015, 40% of China"s steel production will be relocated to the coast.19

“According to Company Law of China, the SASAC director is a representative of the shareholder. SASAC guides and pushes the reform and restructuring of state-owned enterprises, as well as supervises the maintenance and appreciation of state assets value for those state-invested enterprises.” 21

The 12th Five-Year Plan also includes restrictions on steel capacity expansion. This plan further supports the initiatives in the NSP and the 2009 Steel Revitalization/Rescue Plan. The CBSA"s section 20 inquiry in the Seamless Steel Casing (2008) investigation confirmed that the GOC"s control of new or additional steel production capacity extended to the OCTG sector, which includes pup joints.22

In the 12th Five-Year Plan, the GOC charges the China Iron and Steel Association (CISA) to provide policy support proposals during its implementation. It appears that this has in fact occurred, as the Steel Pipe Branch of the China Steel Construction Association has published its own 12th Five-Year Plan in support of the National 12th Five-Year Plan.

The China Steel Pipe Industry 12th Five-Year Plan23 was released by the Steel Pipe Branch of the China Steel Construction Society. In its response to the section 20 RFI, CISA stated that the Steel Pipe Branch is one of its member institutions.24 The CBSA considers CISA to be “Government” as it is under the administration of SASAC as per its Articles of Association. This 12th Five-Year Plan directs that the output of steel pipe should be controlled at 67-75 million metric tonnes (mmt). The scope of the GOC"s reform of the Chinese steel industry extends to the Chinese pipe sector, with the industry concentration targets through mergers and acquisitions to be attained by the end of 2015.

As stated above, one GOC directive under the China Steel Pipe Industry 12th Five-Year Plan is to expand the development of OCTG products such as high collapse, anti-corrosion pipe.25 Chinese OCTG producers are not motivated solely by commercial interests, but must operate and be attentive to the GOC"s objectives, which may conflict with commercial interests. Based on the information on the record, the scope of the GOC"s macro-economic policies and measures have resulted in significant influences on pricing within the Chinese steel industry including the OCTG sector, which includes pup joints.

With the sole cooperating exporter/producer of pup joints being export-oriented, there is no information on the record for domestic selling prices of pup joints. In the absence of Chinese domestic prices for pup joints, the CBSA considers it reasonable to examine other goods in the OCTG sector such as casing and tubing, as pup joints are simply shorter lengths of OCTG casing and tubing.

The wide range and material nature of the GOC measures have resulted in significant influence on the Chinese steel industry including the OCTG sector, which includes pup joints. Based on the preceding, the President is of the opinion that:

During the final stage of the dumping investigation, the CBSA will continue the section 20 inquiry and further verify and analyze relevant information. The President may reaffirm his opinion that the conditions of section 20 exist in the OCTG sector, which includes pup joints, as part of the final phase of the investigation, or conclude that the determination of normal values may be made using domestic selling prices and costs in China.

For purposes of this preliminary determination, normal values could not be estimated on the basis of domestic selling prices in China or on the full cost of goods plus profit, because the President formed the opinion that the conditions of paragraph 20(1)(a) of SIMA exist in the OCTG sector, which includes pup joints, in China.

At initiation, the CBSA estimated normal values by utilizing the Complainant"s full costs of the like goods, adjusted to account for the lower cost of production of subject goods in China, and adding an amount for profit found for publicly listed companies dealing in the pipe and tube sector. The constructed normal values were then compared to actual export prices obtained through customs declarations for subject goods imported into Canada during the dumping POI to estimate the margin of dumping.

In calculating the weighted average estimated margin of dumping for the country, the overall estimated margins of dumping found in respect of each exporter are weighted according to each exporter"s volume of subject pup joints exported to Canada during the Dumping POI.

Based on the preceding, 100% of pup joints from China were dumped by an estimated weighted average margin of dumping of 125.7%, expressed as a percentage of the export price.

The estimated weighted average margin of dumping of certain pup joints from China is above 2% and is, therefore, not insignificant. As well, the volume of dumped goods from China is above 3%, and is, therefore, not negligible.

Hengshui Weijia is a producer and exporter of certain pup joints to Canada. The company was incorporated in August 2009 as a Sino-foreign joint venture.30 Hengshui Weijia is a limited liability company, which is privately held by a Chinese limited liability company, and a Canadian limited liability company, WestCan Oilfield Supply Ltd., which owns 49% of Hengshui Weijia.31

As previously explained, given the current absence of surrogate pricing or cost information, import pricing from other countries or any other pup joint pricing that would be usable for the purposes of a preliminary determination, normal values were estimated by advancing the export price of the goods by the estimated margin of dumping determined for the initiation of the investigation, which was calculated at 32.4%. The estimated margin of dumping for Hengshui Weijia is 32.4 %, expressed as a percentage of the export price.

In conducting its investigation, the CBSA sent a subsidy RFI to the GOC, as well as to the potential exporters located in China that had been identified through internal CBSA documentation. Information was requested in order to establish whether there had been financial contributions made by any level of government, including SOEs possessing, exercising or vested with government authority, and, if so, to establish if a benefit has been conferred on persons engaged in the production, manufacture, growth, processing, purchase, distribution, transportation, sale, export or import of certain pup joints; and whether any resulting subsidy was specific in nature. The GOC was also requested to forward the RFIs to all subordinate levels of government that had jurisdiction over the exporters. The exporters were requested to forward a portion of the RFI to their input suppliers, who were asked to respond to questions pertaining to their legal characterization as SOEs.

In summary, the GOC provided information concerning the amounts received by the identified exporters of pup joints to Canada for four subsidy programs. These programs are:

The GOC identified 18 subsidy programs that were not used by the exporters of pup joints during the POI and for the remainder of the 80 listed subsidy programs identified by the CBSA, the GOC either indicated that there was no such program, it had no information on the program or that the GOC disagreed with the CBSA on the nature of the subsidy.

For the preliminary determination, the CBSA has estimated an amount of subsidy for the one responding exporter in China, Hengshui Weijia, based on the information provided by the exporter and the GOC.

As a result of the above methodology, 100% of the subject goods imported from China are subsidized. The estimated overall weighted average amount of subsidy is equal to 39.9% of the export price.

SIMA does not define or provide any guidance regarding the determination of a “developing country” for purposes of Article 27.10 of the WTO Agreement on Subsidies and Countervailing Measures. As an administrative alternative, the CBSA refers to the Development Assistance Committee List of Official Development Assistance Recipients (DAC List of ODA Recipients) for guidance. As China is included in the listing, the CBSA will extend developing country status to China for purposes of this investigation. Therefore, the investigation will be terminated if the amount of subsidy does not exceed 2% of its value calculated on a per unit basis or if the volume of subsidized goods represents less than 4% of total imports of like goods.37

The following table illustrates that the estimated amount of subsidy respecting China is not insignificant, nor is the volume of subsidized goods negligible.

Based on the information available to the President, on December 12, 2011, the President made preliminary determinations of dumping and subsidizing respecting certain pup joints originating in or exported from the People"s Republic of China, pursuant to subsection 38(1) of SIMA.

the majority of the subsidy programs under investigation have been examined by the CBSA in previous subsidy investigations in respect of China (including OCTG in 2010) and, consequently, the GOC would have much of the information already on hand.40

Pursuant to subsection 8(1) of SIMA, provisional duties, payable by the importer in Canada, will be applied to dumped and subsidized subject pup joints that are released during the provisional period commencing on the day the preliminary determinations are made, and ending on the earlier of the day on which the President causes the investigations to be terminated pursuant to subsection 41(1) or the day on which the Tribunal makes an order or finding. The imposition of provisional duties is needed to prevent the injury which, as per the Tribunal"s preliminary determination, was caused by the dumping and subsidizing of subject pup joints.

If the Tribunal makes a finding that the dumping has caused injury, retardation or is threatening to cause injury, anti-dumping duties in an amount equal to the margin of dumping will be levied, collected and paid on imports of subject pup joints.

If the Tribunal makes a finding that the subsidizing has caused injury, retardation or is threatening to cause injury, countervailing duties in the amount equal to the amount of subsidy on the imported goods will be levied, collected and paid on imports of subject pup joints.

The CBSA has used the best information available to describe the potentially actionable subsidy programs used by the responding exporter in the current investigation. This includes using information obtained from CBSA research on potential subsidy programs in China, information provided by the responding exporter and the GOC and descriptions of programs that the CBSA has previously publicly published in recent Statement of Reasons relating to subsidy investigations involving China.

This program was established in the Income Tax Law of the People"s Republic of China for Enterprises with Foreign Investment and Foreign Enterprise, which was promulgated on April 9, 1991, and came into effect on July 1, 1991. This program was established to expand foreign economic cooperation. The granting authority responsible for this program is the State Administration of Taxation and the program is administered by local tax authorities.

Under this program, the GOC permits producers to receive VAT refunds on purchases of equipment. Eligibility for this program is restricted to a small number of industries, including the metallurgy industry. The program is only available to 26 municipalities covering six provinces in the Central Region of China.

The following programs are also included in the current investigation. Questions concerning these programs were included in the RFIs sent to the GOC and to all known exporters of the subject goods in China. The responding exporter did not report using these programs during the Subsidy POI. Without a complete response to the subsidy RFI from the GOC, the CBSA does not have detailed descriptions of these programs; nor does it have sufficient information to determine that any of these programs do not constitute actionable subsidy programs. In other words, the CBSA has to date, not determined if any of these programs should be removed from the investigation. The CBSA will continue to investigate these programs in the final phase of the investigation.

Preferential Tax Policies for FIEs and Foreign Enterprises Which Have Establishments or Places in China and are Engaged in Production or Business Operations Purchasing Domestically Produced Equipments